At the Bank of Japan’s branch managers’ meeting yesterday, it was pointed out that many people want stable exchange rates. There were also aggressive comments, such as large companies planning early wage increases and possibly raising wages at or above last year’s level. This caused the USD/JPY rate to drop temporarily to 157.58 yen.
Meanwhile, during yesterday’s NY session, several U.S. Federal Reserve members expressed caution about cutting interest rates due to uncertainties under the new administration. This strengthened demand for the dollar, pushing the USD/JPY back to the 158 yen range by the close.
The USD/JPY rate is now close to last year’s high of 161.94 yen, showing the dollar’s strong influence.
For today’s U.S. employment report, attention is on the unemployment rate. If it rises above last month’s level, selling pressure on the dollar may increase sharply. However, if the results are stronger than expected, the potential for further dollar gains is limited since the dollar has already strengthened.
Forecast Range for USD/JPY: 158.80–157.00 yen
Note: The above content does not guarantee profits. Please make your own decisions when trading.